Subject: EEM Prepared By: Suman Jha ( ) Shikha singh ( ) Manjeet Verma ( ) Subject Teacher : Mrs. Bhumika Rana Parul Institute of Engineering and Technology Department of Electronics and Communication

PRESENTATION ON :=

What is an SMALL SCALE INDUSTRY……..

 A small scale industry is a business or project is created on either a small budget or for a small group of people

Latest Definition…. As per the latest definition which is effective since December 21, 1999, for any industrial unit to be regarded as Small Scale Industrial unit the following conditions are to be satisfied: - Investment in fixed assets like plants and equipment's either held on ownership term on lease or on hire purchase should not be more than Rs 10 million. Less than 150 employees in a unit.

IMPORTANCE OF SMALL SCALE INDUSTRIES

1. EMPLOYMENT SSIs are labor intensive so there is a great employment potential. Large-scale industries are capital intensive, hence not in a position to solve acute unemployment problems in India.

2. CAPITAL LIGHT India is a capital scarce country, which is why we need to make optimum use of all the capital and resources available in terms of employment and productivity. SSIs are capital light and hence more suitable to developing nations. Limited capital is needed to start an SSI, the returns are quick, and those returns can again be reinvested.

3. SKILL LIGHT AND IMPORT LIGHT No technological skill or managerial skill required. More suitable to underdeveloped countries where literacy rate is low and skilled labor is scarce. Require less import of machinery, technical skill hence placing little or no strain on the scarce foreign exchange reserves of developing nations.

5. SUPPORT TO AGRICULTURE AND LARGE- SCALE INDUSTRIES They help supply inputs, processing facilities as well as consumer goods to rural masses. Rural based SSIs help absorb all the surplus labor in villages and towns thus improving the productivity in the agricultural sector. SSIs also help large scale industries by supplying spare parts, components etc. 6. REGIONAL DISPERSAL OF INDUSTRIES AND BALANCED REGIONAL DEVELOPMENT Political, social and economic factors affect the development of all regions. Some regions are more developed while others continue to lag behind. Large scale industries are mostly centered in some big cities, while SSIs help decentralize industries thus helping avoid, space crunch, slum development problems etc. Since SSIs are easy to set up, they can be set up anywhere and hence contribute to a balanced regional development.

7. REDUCTION IN INCOME-INEQUALITIES AND EQUITLE DISTRIBUTION OF NATIONAL INCOME SSIs help equitable distribution of national income because of 2 reasons: a)Ownership of SSI is more widespread than large-scale industries. b)SSIs possess large employment potential. 8. CONTRIBUTION TO EXPORTS AND INDUSTRIAL OUTPUT 45%-50% of the Indian Exports is being contributed by SSI Sector. Direct exports from the SSI Sector account for nearly 35% of total exports. It is estimated that small scale industrial units contribute around 15% to exports indirectly.

Some Small scale Industries